By Favour Nnabugwu
Some West African countries under West Africa Insurance Supervisory Association, WAISA, have taken to index-based insurance.
Nigeria’s Commissioner for Insurance, Alhaji Mohammed Kari who is also Chairman of WAISA said that Gambia, Kenya, as well as Ghana insurance industries have expanded their horizon beyond the conventional insurance products.
Speaking at the IBAI workshop held in Abuja, Kari said that Kenya has gone further with the claims settlement of $5.3million to 20,000 herdsmen.
Kari said, “WAISA under my chairmanship last year undertook a situation analysis on the member country’s involvement in the development of the index insurance in the region.
“Gambia had been involved with the Takaful Insurance and Ghana had started Drought Index Insurance while Senegal also conducted its first feasibility study in 2009 and had gone ahead with implementation programs along with some other Francophone countries in the region”.
Coming back to Nigeria, Kari highlighted the importance of the IBAI to spur innovation, spring rural financial markets, allow the nation’s financial institution to be more willing to provide credit, especially for small farmers, among others.
Speaking at the workshop, Deputy Managing Director of Africa Reinsurance Corporation, Mr. Ken Aghoghovbia said Nigeria stood out as one of the world’s most promising agricultural producers.
“Agriculture in Africa is generally dominated by smallholder farmers and pastoralists who do not appreciate what insurance can do for their business. Even the ones that do, either lack the confidence that insurers will easily settle their claims or can barely afford the insurance premium.”
Also speaking, Minister of Agriculture and Rural Development, Chief Audu Ogbeh said that Agricultural insurance will continue to capture the attention of policy makers, donors, and a large number of stakeholders in lower income countries around the world.